Paul Tudor Jones said inflation is about to appear “with a vengeance” and may force the new Federal Reserve chair to accelerate interest-rate hikes.
The hedge fund manager said policy has focused on a “low inflation problem” and years of rates near zero amid economic expansion will have “painful” consequences. Policy makers should have been more aggressive in tightening policy and “rejecting the fiscal impropriety associated with this most recent tax cut,” he said.
“We are replaying an age-old storyline of financial bubbles that has been played many times before.This market’s current temperament feels so much like either Japan in 1989 or the U.S. in 1999." he said.
Jerome Powell was sworn in Monday as chairman of the Fed, inheriting a U.S. economy in its third-longest expansion on record, with unemployment and inflation near historically low levels. U.S. stocks tumbled 4.1 percent on Monday, the most since August 2011, amid concern that quickening inflation will force interest rates higher.
Trader Bozhidar Arabadzhiev
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